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Business Organizations Keyed to Allen
Fletcher v. A.J. Industries, Inc.
Citation:72 Cal. Rptr. 146, 266 Cal. App. 2d 313 (1968).
Plaintiffs initiated a derivative action alleging certain directors were mismanaging corporate assets. During the course of the action, the parties reached a settlement in which significant changes would be made to the corporate structure while disputes regarding specific transactions were referred to arbitration. The corporate changes included, most significantly, replacement of four directors. During the course of arbitration, no monetary award was made to the corporation itself, but awards were made to the stockholders. Pursuant to the settlement, no attorneys’ fees would be awarded by the arbitrator unless a monetary award was made to the corporation. The parties acknowledged the plaintiff’s intent to apply for an award of attorneys’ fees from the trial court.
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